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Service tax exemptions for the accommodation

As specified in Service Tax Policy No. 9/2020 dated 6 March 2020, the service tax for the accommodation industry such as hotel, shall be exempted.

In according to the Economic Stimulus Package 2020, there are two service tax exemptions in respect of accommodation. The tax exemptions are provided for a total of six (6) months from 1 March 2020 to 31 August 2020.

1.1 exemption from payment of service tax to any person staying or receiving any taxable services provided by the accommodation premises operator whom is registered under service tax.

1.2 an accommodation premises operator which is registered under service tax is exempted from charging a service tax on accommodation and other related services provided under Group A: Accommodation, First Schedule, Service Tax Regulations 2018.

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